Investing in coastal property

Our property expert discusses investing in coastal property in South Africa that is affordable in addition to being an excellent investment. He advises looking at KwaZulu-Natal's coast, which has been called "the Miami of SA"

Although I would like to invest in a coastal property in Cape Town, it seems that prices are way out of my budget. Where else can I look to in South Africa for a high-yielding coastal property investment?

Coastal real estate is popular in South Africa and the country boasts some of the most beautiful coastal properties in the world.

The good news is that property in South Africa is in a stable recovery state and the time to invest has never been better.

According to a recent report in Real Estate Web, Standard Bank is expecting an average nominal growth of 6% in the second half of 2010 and into 2011.

KwaZulu-Natal’s coastal property is a growing and popular investment and was recently referred to as the ‘Miami’ of South Africa by an American tabloid because of its similarity in climate.

Durban’s beautiful North Coast includes the towns of Durban North, Umhlanga, La Lucia and Ballito.

Depending on what your budget is, a return on your investment along the North Coast as is as secure as anywhere else in the country. According to Lightstone (deeds office data), the prices of sectional title units range between R1.5m – R4 million in the lower to mid range bands and R4m – R10 million in the mid to upper range.

House prices range from R2m – R4.5 million lower to mid range and R4.5m – R20 million in the mid to upper range. In the 12 month period ending May 2010, a total of over R3 billion worth of residential real estate was sold in these areas.

Rental yields are good in this area and should you decide to place a tenant in your new home, Seeff Properties are geared to assist you. Durban’s infrastructure is solid and this is one of the reasons why the recent soccer World Cup was such a success, as well as the reason why Durban is able to bid to host the 2020 Olympic Games.

The modern King Shaka International Airport was also recently unveiled on the North Coast.

In search of a lucrative investment I would also suggest that you investigate the following investment opportunities by requesting further information from any Seeff office in Knysna, Plettenberg Bay, Hermanus as well as some areas just outside Cape Town’s metropole such as Blouberg, Gordon’s Bay and the Strand.